Korean Air Lines Co., South Korea’s top full-service carrier, will preserve the value of Asiana Airlines Inc.’s mileage points for a decade after their merger, easing concerns among Asiana loyalists over the fate of accumulated benefits.
The Fair Trade Commission (FTC) on Tuesday unveiled the “integrated mileage plan” submitted by Korean Air, which is set to fully absorb its smaller rival by the end of next year.
Under the plan, miles earned from flying with Asiana will convert to Korean Air’s program on a one-to-one basis, while credit card and other partner-earned Asiana miles will be recognized at 82% of their value.
The antitrust regulator said the conversion rate for credit card miles was set above market value, where Korean Air miles typically accrue at a weaker rate than Asiana’s.
“We applied the most consumer-friendly criteria, which resulted in the 1 to 0.82 ratio, a level above market expectations,” said an FTC director at a media briefing.
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In November 2020, Korean Air signed a deal to acquire a controlling stake in Asiana Airlines. The acquisition was finalized in December 2024 following a yearslong review process by international competition authorities.
Asiana Airlines is currently operated as a Korean Air subsidiary. For a complete merger, the companies are undergoing organizational, personnel and branding integration, which is expected to last over a year.
Asiana’s nearly 30 million frequent flyer members will be able to redeem their balances for Korean Air award tickets, upgrades and services.
Korean Air operates 59 routes that Asiana does not serve, including Washington, D.C., and Atlanta.
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But once the merger takes effect, members of the merged entity will lose access to carriers of Star Alliance, to which Asiana currently belongs, such as Lufthansa and United Airlines. Instead, they will gain access to Korean Air’s SkyTeam partners, including Air France and Delta.
All balances must eventually be converted: Asiana’s mileage scheme will continue separately for up to 10 years, after which all remaining miles will automatically migrate into Korean Air’s account system.
The FTC had demanded a clear consumer protection plan when it granted conditional approval for the merger in May 2022.
In June this year, it rejected Korean Air’s first mileage proposal as insufficient, forcing the airline to submit a revised version.
The watchdog said the new plan provides balanced safeguards for both airlines’ customers.
The FTC will open a public consultation process until October 13 before final approval.
The mileage integration plan will take effect from the date of the merger.
By Ji-Eun Ha and Bo-Hyung Kim
hazzys@hankyung.com
In-Soo Nam edited this article.
